What Insurance Covers Money Stolen from a Hacked Bank Account?

A hacked bank account can create two different losses: money moved out of the account and costs to investigate or contain the intrusion. Crime insurance may address the direct theft when the funds-transfer or computer-fraud agreement covers the way the money was taken. A Travelers specimen, for example, provides separate agreements for certain fraudulent transfers and computer-caused transfers. Cyber coverage may address forensic services or other response expenses after a covered security event, as the FTC describes.

Do not assume that proof of a hack automatically means reimbursement for the account balance. The crime wording may require a transfer instruction to meet a narrow definition, and policies can differ on whether the account is a covered transfer account or whether an authorized user’s action qualifies. Cyber liability and first-party response sections also have their own triggers and limits.

Check definitions for unauthorized access, funds-transfer fraud, computer fraud, and covered accounts. Review authentication-control conditions, exclusions for employee or authorized-user conduct, the applicable limit, reporting deadline, and coordination between the crime and cyber policies. Contact the bank and insurer promptly and preserve access logs and transaction records.